Paying Stamp Duty

[willdew]

I'm in the process of buying my first house, and it's going to put me in the 3% stamp duty bracket. Can anyone tell me when they is to be paid? Do I have a period of time in which to pay? If so, how long? I've seen I've got to have all the forms filled and returned within 30 days of the move in date, but can't see anywhere it says about the payment?

Thanks.

[RichUK]

IIRC you pay it the day you complete to your solicitor.

[Eric Mc]

It's usually handled by the completing solicitor and you pay it as part of the final settlement amount. In other words, it's taken care off when the deal is finally closed.

[alexkp]

Yep - you are fully stitched up without ever laying your hands on the money.

>> Edited by alexkp on Sunday 3rd July 17:39

[shirepro]

Another Sd question. I heard that is you SWAP houses then stamp duty isn't payable. If so, does that mean all thse builder Part Exchange deals don't pay SD?

[danodon]

IIRC (and it's been a while), stamp duty must be paid within 30 days of the date of the agreement. If not paid within 30 days, there is an additional penalty.

Generally, your solicitors will ask for the stamp duty shortly before completion so as to be "in funds". If they then overrun the 30 day period, the penalty is their problem.

A relevant agreement that does not show evidence of payment of stamp duty cannot be enforced in the courts and will not be acceptable when you choose to sell.

In theory, you could choose not to pay the stamp duty and take your chances - but it is unlikely that any mortgage lender would go along with this approach. And, of course, this would be contrary to the law of the land.

This explains why oil companies, who sell interests in 'onshore' oil & gas fields for millions at a time (and 3% of millions is a lot of money), regularly complete such sales 'offshore' and keep the original agreements outside the jurisdiction.